Nest Egg Gone? LA Times Says Reverse Mortgages Provide Funds You Need

lat_logo_inner Over the weekend, Los Angeles Times columnist Kathy Kristof wrote about using a reverse mortgage to help offset the loss of retirees nest egg.  She writes that if you’re worried about how you’ll pay the bills after seeing the market devour a chunk or your nest egg, you may be sitting on the solution: your home. 

“Reverse mortgages can provide a lot of people with peace of mind because even when the market is down, you can secure lifetime income,” said Tony Garcia, president of LibertyStreet Financial Group, a reverse mortgage lender based in Carlsbad, Calif.  To read the rest of the article click the link below.

Nest egg nearly gone? Reverse mortgage can provide the funds you need

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  • I own a house value in aprox. $190,000 I have a mortgage balance of $78,000 born 12/7/45 what could be my possible paid out balance after expenses and loan cancelation?

  • Rose,

    Based on the information you provided – a rough estimate of what you could recieve by taking out a reverse mortgage (in order to provide you with full disclosure these calculations are based on today’s rates and are subject to change. Until you complete the independent FHA counseling and the Reverse Mortgage application the principal on the loan can not be guaranteed):
    You could net $103,489.56 based on a property value of $190,000 then you deduct $78,000 (current mortgage pay-off) and you would have roughly $25,489.56 available to you to take as a lump sum at closing, put in a line of credit or tenure payment (monthly payment to you for the rest of your life) or any combination of the three. Not sure what state you are in so I do not know if there is a prepayment penalty on your current mortgage if there is that would also need to be paid at closing. Good luck to you, if you need further assistance I can be reached at scollins@1stconstitution.com or call Sean at 888-519-7677 x417.

  • Here is another estimate for you, Rose. A fixed rate reverse mortgage, currently at 5.5% will net $28,066, after your existing mortgage ($78,000) is paid off.

    A monthly adjustable rate reverse mortgage will yield $28,027 at a current initial rate of 3.2%.

    These estimates were based on an appraised value of $190,000 for one borrower age 63.

  • Nice article. It’s a pleasure to see a realistic article from such a highly respected publication stating the truth about the reverse mortgage product. Thanks for the link.

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